(Bloomberg) -- Thailand’s retail inflation accelerated in June to a new 14-year high, boosting the case for central bank to raise borrowing costs sooner than later.
Consumer prices rose 7.66% from a year earlier, accelerating from 7.1% a month ago, official data showed Tuesday. That’s faster than the median 7.45% gain predicted by economists in a Bloomberg survey and the highest since July 2008.
Faster inflation adds to the case for Southeast Asia’s second-largest economy to join central banks the world over in tightening policy settings to rein in price gains. The Bank of Thailand has for now ruled out the need for any unscheduled rate action, with one more price print due next month before policy makers meet to review monetary policy on Aug. 10.
The Thai interest rate-setting committee said late last month delaying monetary policy normalization amid heightened inflation pressures may cause “greater costs” to the nation’s economy after keeping the key rate unchanged in a 4-3 split vote.
Some other key details from Tuesday’s price print:
- Consumer prices rose 0.9% month-on-month, beating estimate for a 0.78% gain
- Core consumer prices +2.51% from year ago; estimate +2.37%
- Index of foods and non-alcohol beverage rose 6.42%
©2022 Bloomberg L.P.
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